Earnings Per Share

9 Months Ended

Sep. 30, 2023

NOTE 14 – EARNINGS PER SHARE

The Company’s earnings per share (“EPS”) is computed by dividing reported net income by the weighted-average number of shares outstanding. Diluted EPS considers the potential dilution that could occur if common stock equivalents of stock options, RSUs, and PSAs were exercised or converted into stock. PSAs are included in the computation of diluted shares only to the extent that the underlying performance conditions: (i) are satisfied as of the end of the reporting period or (ii) would be considered satisfied if the end of the reporting period were the end of the related performance period and the result would be dilutive under the treasury stock method.

As of September 30, 2023, the PSAs granted during the year ended December 31, 2021 met the related performance conditions for the initial performance period and were included in the calculation of diluted EPS. However, the PSAs granted during the year ended December 31, 2022 and during the nine months ended September 30, 2023 have not yet completed their initial two-year performance period and therefore were excluded in the calculation of diluted EPS.

The dilutive effect of stock options, RSUs, and PSAs for each period reported is summarized below:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Net Income	$	23,740	$	19,105	$	60,450	$	55,364

Weighted-average number of basic shares outstanding during the period		18,815		18,826		18,795		18,806
Dilutive effect of stock options, RSUs, and performance shares		159		183		163		195
Weighted-average number of diluted shares outstanding during the period		18,974		19,009		18,958		19,001

Basic earnings per share	$	1.26	$	1.01	$	3.22	$	2.94
Diluted earnings per share	$	1.25	$	1.01	$	3.19	$	2.91